Active

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Active

A market in which there is frequent trading.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Active

1. Describing a security that is traded with relative frequency. Many investors look to active securities because they can be traded, even in rather large quantities, without affecting the price. Active securities usually have a low bid-ask spread.

2. Describing a market or exchange with a high trading volume.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

active

Of or relating to a security in which there is a great deal of trading. Active securities appeal to many investors because they usually can be traded without affecting the price. In over-the-counter trading, an active security usually has a smaller spread between the bid and ask price. See also most-active stocks.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.